What childcare really costs in the UK

Many parents will be breathing a sigh of relief as the final expansion of Government-funded childcare is rolled out today.

From 1 September, working parents of children aged between nine months and four years in England will have access to 30 hours of funded childcare per week during term time.

But critics say the scheme, which has been branded “free childcare”, is not quite what it says on the tin, with eligible parents still facing eyewatering nursery fees.

And although the Government subsidy has brought down costs in England, parents are still likely to spend more of their wages on childcare than in comparable countries such as Germany and France.

Here’s a full breakdown of what childcare really costs in the UK and how it is likely to compare to other countries.

How expensive is UK childcare?

The average cost of full-time nursery (50 hours per week) for a child under two in England is £12,425, according to the 2025 Childcare Survey by the children’s charity Coram.

This has decreased by 22 per cent from 2024, the survey shows, reflecting the incremental expansion of Government-funded childcare hours since April last year.

The average cost of full-time childcare for two-year-olds in England has also gone down due to the Government reforms, decreasing by 23 per cent to £11,736.

It means that Wales is now the most expensive place in Great Britain for under-twos and two-year-olds, followed by Scotland and then England.

But childcare costs in England are still the most expensive for three and four-year-olds, with an average full-time place surging by 10 per cent to £6,600. Costs increased by 6 per cent in Wales to £6,199 and 4 per cent in Scotland to £5,505.

In England, all three and four-year-olds are eligible for 15 hours of Government-funded childcare, regardless of their employment status.

Up to 15 hours of state-funded childcare per week has been on offer to eligible parents since April 2024 for children two and over. This was expanded to nine-month-olds from September 2024 and from September 2025 to 30 hours for eligible parents of all under fives

To qualify, the majority of parents must earn between £9,518 and £100,000 per year.

How does it compare to other countries?

UK parents are still likely to pay a higher proportion of their wages on childcare than other nations such as Germany and France – even after the September rollout.

The latest data from the Organisation for Economic Co-operation and Development (OECD) is from 2023, meaning it is not possible to directly compare the UK to other countries since the free childcare expansion.

But the latest data does give us some insight into how much more expensive childcare is in the UK compared to other 42 countries assessed by the OECD.

In 2023, the UK was one of the most expensive OECD countries for childcare, with only the United States having a higher proportion of average household income spent on childcare at around 40 per cent.

The figures are based on an analysis of a couple with two children aged 2 and 3, with one parent earning 67 per cent of the average wage, and the other on the minimum wage.

Using these barometers, UK parents spend 23 per cent of their average wage on childcare, followed by parents in Ireland, at 19 per cent.

At the opposite end of the scale, parents in Germany spend just 1 per cent of their salary on childcare, with parents in Canada spending 6 per cent, and those in France spending 7 per cent.

The low cost in Germany is primarily due to government subsidies and a strong public childcare system.

A series of reforms in Canada has aimed to reduce childcare costs in recent years, while the system in France combines substantial public investment with a progressive means-tested fee structure and supportive parental leave policies.

Given that UK childcare costs start from such a high baseline, the Government subsidy is unlikely to dramatically alter the country’s position relative to other OECD nations.

Is childcare really ‘free’?

The Department for Education said parents will save up to £7,500 a year per child.

But parents and nursery providers have criticised the Government’s decision to brand the reforms as “free childcare”, arguing that the funding is insufficient and costs are still high.

The subsidy only covers 30 hours per week during term-time, meaning parents working full-time must pay for any additional hours themselves – including to cost of entire weeks during the school holidays.

Moreover, the Early Years Alliance previously told The i Paper nurseries were going to increase prices by 15 to 20 per cent this year to cover the expansion, arguing that the funding is “inadequate”.

They say that the Government subsidy has been wiped out by tax rises and wage increases for employees.

Nurseries are also raising the cost of meals, nappies, trips and other extras by at least 10 per cent to account for the childcare reforms.